Staff at the Wansbrough Paper Mill in Watchet have been told the mill could close this December.
It is a major employer in West Somerset with around 170 workers.
It is owned by DS Smith, a lead supplier of paper and packaging across Europe.
DS Smith has released a statement about the proposal:
“Following a review of the long term economic outlook for the Wansbrough paper mill, today we announced to employees at the mill that we are proposing to close Wansbrough Mill and are entering a period of consultation with employee representatives. The process will take into account all possible options for the future of the site.
"This announcement in no way reflects the commitment and efforts of our employees who continue to support our business.
"We will work closely with Union and employee representatives throughout the consultation process to ensure the best possible outcome for all parties. It would therefore be inappropriate to comment further until the completion of the consultation process.”
Significant delays are expected on Somerset roads this weekend as a 145 ton boiler is moved to a paper mill in Watchet.
The boiler is 16ft wide, 16ft high and 100ft long and will be moved on Sunday (January 12). The journey will begin at 9am when it will leave Sedgemoor Services on the M5 and travel to junction 24.
From there it will head into Bridgwater on the A38, turn left onto the A39 Broadway and continue along the A39 through Williton to Washford Cross where it will turn right onto the B3190 and into the paper mill at Watchet.
A special constable from Somerset will meet the Queen later this morning when he collects an award at Buckingham Palace.
Simon Bale is being honoured for services to community policing.
Mr Bale is also a scout leader and coastguard volunteer in his home town of Watchet.
A Special Constable from from Somerset will be awarded an MBE at Buckingham Palace tomorrow for services to community policing.
Simon Bale regularly patrols his home-town of Watchet on top of his day job at Avon and Somerst Police Headquarters.
Laura Makin-Isherwood reports.
A dockmaster from West Somerset who jumped into a harbour to rescue a baby has been awarded for his bravery by the county council. 63 year old George Reeder leapt into the water to save six month old Sam Cooper-Stevens after his pushchair was blown from the quayside in Watchet in January.
A six month old baby has had a miraculous escape after being rescued from the marina at Watchet in Somerset.
The pram Sam Cooper Stevens was in was blown into the harbour by a gust of wind. The dockmaster heard screams and jumped in.
Here is an extended interview with dockmaster George Reeder.
The 63-year-old dived into the water at Watchet marina to drag out a buggy after it was blown in by a gust of wind.
Six-month-old Sam Cooper Stevens spent several minutes trapped under the water.
The father of six month old Sam has been telling us of the moment he found out his baby had plunged into Watchet harbour after a gust of wind blew his buggy over the edge.
Martyn Stevens lives locally, with partner Kate Cooper. Sam was rescued by dockmaster George Reeder and given CPR by a friend.
This is the photo of six month old Sam Cooper Stevens, who is recovering well at Musgrove Park Hospital after spending several minutes underwater when his buggy fell into Watchet marina.
He was rescued by the dockmaster and given CPR by a family friend before being flown by air ambulance to Taunton.
A baby's had a miraculous escape after being rescued from the marina at Watchet in Somerset.
The six month old was pulled from 12 feet of water after his buggy rolled into the harbour.
He was rescued by dockmaster George Reeder and taken to hospital where he's described as 'comfortable'.